Ralph Lauren China Store Has Temporarily Closed 2/3

In February 13th, Ralph Lauren Corp (Ralph Lauren), an American luxury group, updated the impact of the new crown pneumonia epidemic. In the past week, Ralph Lauren has temporarily closed about 2/3 of the mainland stores in China to ensure the health and safety of employees, consumers and partners.
In view of the sharp decline in the number of tourists and passenger traffic caused by the outbreak, Ralph Lauren expects some of the business in China and Asia will be greatly affected. Ralph Lauren predicts that the epidemic will have a negative impact on the sales performance of the fourth quarter of 2019/2020 in the 5500 quarter to 70 million US dollars. In addition, taking into account the current situation of China, Japan and Korea, the epidemic will have a negative impact on the operating profit of the Asian market in the fourth quarter from 3500 to 45 million yuan.
At the same time, Ralph Lauren added, "this expectation is based on the current epidemic situation. If the development of the epidemic has not changed, it is expected that it will be adjusted accordingly." As for the supply chain side, Ralph Lauren believes that the temporary disruption of China's supply chain will have an impact on a small portion of global orders in the fourth quarter.
Ralph Lauren, executive director and chief creative officer of Ralph Lauren, said, "the epidemic affects everyone's heart. The most important thing now is to ensure the safety of our team, partners and consumers."
"We will continue to evaluate the impact of supply chain and retail environment on business," said Patrice Louvet, chief executive officer and chief executive officer of Ralph Lauren. Although the outbreak has caused a series of uncertainties, the fundamentals of Ralph Lauren business remain strong. In the long run, the Chinese market and the whole Asian market have great potential for growth. "
Ralph Lauren plans to further explain the operational and financial implications of the 2021 fiscal year and the first quarter of fiscal year 2020 in the fourth quarter earnings conference call.
Last week, Ralph Lauren released the key financial data for the third quarter of fiscal year 2020. Thanks to the increase in winter clothing prices, the quarter's earnings were better than market expectations, and net income increased 1.4% to $1 billion 750 million over the same period, slightly higher than the average analyst estimate of $1 billion 720 million. In the third quarter, the Chinese mainland continued to maintain a good momentum. China's mainland revenue grew by more than 30% over the same period.